Ahead of emergency talks in Brussels today, Greek PM Alexis Tsipras has revealed that some of its creditors have rejected the country's latest reform proposals.
"The insistence of certain institutions of not accepting parametric measures has never happened before -- not in Ireland, nor in Portugal,” he tweeted - adding that he is starting to doubt if the country's creditors are serious about making a deal:
“This strange stance may hide two possibilities. Either they don’t want an agreement or they are serving specific interests in Greece.”
Spot the moment the Tsipras headlines came out. http://t.co/tzZkz4TZWg pic.twitter.com/2AOtvaCbuo
— Joseph Weisenthal (@TheStalwart) June 24, 2015
It is unclear which of the three creditor institutions he is referring to. It is believed that the IMF is pushing for income tax increases, while EU authorities want further pension cuts.
Jeroen Dijsselbloem, president of the Eurogroup has also been speaking - he says that while negotiations are difficult, both sides are still working towards a solution.
Greece's Prime Minister, Alexis Tsipras is due to attend an emergency meeting with leaders of the country's international creditors in Brussels today.
European Commission president - Jean-Claude Juncker, the head of the International Monetary Fund - Christine Lagarde, ECB President Mario Draghi and Mr Dijsselbloem are all due to attend.
Reuters reports that this meeting is still going ahead and that talks have not broken down.
The latest Greek proposals include:
- Streamlining the complex VAT system by getting rid of some exemptions, including on the country's islands. This would make goods 30% more expensive for tourists on the islands as there is currently a 30% discount. The plan could raise €1.36 billion by next year.
- Early retirement would be restricted, potentially raising €300 million.
- Pension contributions would be increased by 3.9%, raising a further €800 million and there would be a special one-off tax for profitable businesses.
- Changes to corporation tax, increasing tax paid by the rich, expected to raise €815 million.
